If you a recipient of Medicare Advantage and Medicare Supplemental insurance, you are probably getting mail and phone calls from the insurance companies advising you to buy additional coverage.
The insurance agents will sell additional health insurance to Medicare Advantage and Medicare Supplemental insurance recipients through warning them about crushing the medical expenses they will incur most especially if they get sick and only have Medicare coverage.
But how can you save money on health insurance if you are a Medicare Advantage and Medicare Supplemental insurance recipient?
The majority of the small companies gain their bargaining power with the insurers through banding together in the health insurance purchasing cooperatives. Each cooperative is structured uniquely. Even though the insurance itself is not discounted, the members can get extras including dental benefits and free access to health insurance consultation they otherwise would not be eligible for or would have to pay back on their own.
Combined health savings account (HSA) and high-deductible health plan
This approach mainly helps keep spending in check mostly because it puts the responsibility of the recipient to think back regarding the cost. HSAs let those recipients with high-deductible health insurance plans to utilise the employee pretax money in order to pay the uncovered medical costs and at the same time carry over the unused funds for the future years.
Determine if your insurer will allow you to switch to a less expensive policy
There are some insurers who will allow you to switch to a less comprehensive type of policy even without medical underwriting. For instance, you have a Medigap Plan F; your insurer will let you switch to high-deductible Plan F without a new underwriting.
Apply for new policy if you are healthy
Even though the insurers of Medigap can charge you more due to your health and age, you might qualify for the new policy if you are young and healthy. Most of the insurance departments list the prices for Medigap policies that are available in their area.
Find if your state has specialised rules to allow you to switch a policy
For instance in New York, you can switch your Medigap policies any time regardless of your health status. The majority of the state insurance departments have their buyer’s guide that explains the rules of switching plans and prices by the insurers. You might be able to change the plans at certain times. For instance, in Missouri, you can switch to another insurer’s version of the letter plan right on the anniversary of the policy renewal date. In California on the other hand, you can switch to a much lower-level policy within thirty days of your date of birth even without underwriting.
It would be worthwhile to check and update the insurance rates on a regular basis. This way, you would not end up paying extra most especially when the situation requires you to save an amount of money. As much as possible, re-evaluate your insurance packages and rates every six months and make sure to avoid any default. Always pay your premiums on time and stay protected anywhere and anytime.